July 2009

July 31, 2009

Able or willing to receive favorably. Capable of or qualified for receiving.

We had an enthusiastic response to yesterday's post, Participate, on the Dave Matthews Band and its members all coming on board as a result of taking the leap to play as a guest with Dave at one point or another.

One reader had a terrific comment that forms the basis of this post. Dori L correctly points out that the concept is a two-way street. For the arrangement to work, Dave had to be receptive and open to outsiders playing along with him. Had he remained closed and exclusive, no change and little progress.

This is the way it goes in marketing and business, too. If you're not open to new ideas and new blood, you might as well resign yourself to a life of steady, boring incrementalism. You'll recycle the same concepts over and over. You'll wind up a few steps ahead if your lucky, but most likely a bunch of steps behind.

Greatness comes from moving leaps and bounds ahead. Dave Matthews Band has done it. Many companies have done it and there's no reason you can't do it. As Dori points out, it takes two willing parties - one willing to take a chance on inviting new people to the party...and one willing to take a chance to get off their duff and go to the party. Sometimes you'll be the host and sometimes the guest. Either way, here's to hoping you won't just open the envelope, you'll push it.

July 30, 2009

Last night I saw the Dave Matthews Band (DMB) in concert. It was a great show and got me thinking as I stood watching a number of excellent musicians play their individual parts together on stage.

Great finished products don't usually start all at once, in the same place at the same time. Take DMB. The people I was watching didn't all join the band simultaneously. As Dave Matthews began playing out at clubs in Charlottesville, VA back in the 1990's, he was often joined on stage by an artist or two he'd heard of or had been suggested to him. A few of his current band members played for warm-up bands that had the opportunity to play along with DMB once in a while. Their talent caught the attention of Dave, the chemistry was good and when the opportunity arose, they got the call.

None of members of DMB - including Dave himself - would be where they are if they hadn't taken the risk of participating. You don't catch someone's attention from the audience or while you're sitting at home...no matter how much you practice and no matter how talented you are. You just have to get up on stage and play.

We need to remember that every day. For ourselves and for our companies. For ourselves, we need to constantly push into the uncomfortable limelight. We need to get up on whatever stage our industry has and show our stuff. For our companies, we need to put them out there in the public arena in front of potential customers as much as possible. If that means demos, free trials, initial discounts or other promotions, so be it. In life and business (including music), one thing leads to another. But you need to start with the one thing.

Last night I had the opportunity to meet and hear Rev. Gene Robinson, the Episcopal Bishop from New Hampshire. Rev. Robinson is the first openly gay Bishop in the Episcopal church. His ordination back in 2003 has caused 6 years of turmoil within the national and international church. And, if you can believe it, he's also had to live with daily death threats. Just last week, the Episcopal church took steps to further support Gene, gays in the church and same-sex unions. Progress.

The topic of Rev. Robinson's speech last night was "What Makes Us Moral?" Pretty serious stuff. His answer? If you're doing something that takes you closer to reconciliation with all humanity, your actions are moral. If you're driving people apart, creating an us and them, your actions are not moral.

But his most interesting point involved fear. Usually people misunderstand one another out of fear. Our job in reconciliation is to put ourselves in others' shoes, try to feel their fear and work hard to allay those fears. He said we can't ever forget that we're all one - not separate - and, whether you believe it or not, we're all going to heaven together. Friends and supposed enemies.

Now, a leap to marketing. Of course, this topic isn't even close to being on the same level as morality, but bear with me. When we believe in what we're doing every day and work hard to sell what we make to others, what stands in our way? Misunderstanding, right? Buyers are usually scared to take a risk on something. They'll do it when those fears are allayed, when they understand more and when the benefits are clear.

First address the fear. In sales lingo, it's called overcoming objections. Next, eliminate the us and them. Help your prospects realize that we're all on the same team. You're together with them in trying to solve their problems. The result? They warm up, they relax, they see that the sky's not going to fall if they buy something from you. In fact, they come to see that their world will get a little better.

Rev. Robinson mentioned that he makes a point of staying in contact with those who oppose him as much as possible. That way he can work on reconciliation and allaying their fears. It's hard, but we can do that, too...in business and in our personal lives. Sure, it takes some bravery on our part. But it's even harder to address the fears of others. That's real courage.

July 28, 2009

One of the hooks or bent nails that hold cloth stretched on a tenter. In a state of uneasy suspense or painful anxiety.

In 1300 in Middle English, the word tente meant to stretch. Later in the manufacturing, a tenter was a stretcher. A tenter was a framework on which cloth was stretched so it would set or dry evenly. In 1470 the term tenterhooks appeared. Today, we say we're on pins and needles. Back in the day, folks were on tenterhooks if they were nervously anticipating something. Perhaps stretched thin as well.

How often have you been on tenterhooks as a new product or service rolls out? How about when a new marketing program goes into effect? A new pricing strategy? New advertising campaign? Brochure? Sales call? Just about anything or everything that has to do with closing a deal, making some money, keeping the lights on? Pretty often, huh? Join the club.

I have found, though, a way to reduce the anxiety. The closer I am to customers - all the time - the more confident I am that something I try is going to resonate. Conversely, the further away I am, the less in touch, the more I feel stretched out in a frame like a piece of cloth.

It's not just traditional research that's needed. Sure, that helps. It's really knowing and understanding your customers. It's bringing them in on the front end of development. It's bouncing strategies off them continually, not just because the stagegate process says it's time. The best relationships don't exist because you need to check a box, they work because of mutual interest and honest caring.

I discovered another word that comes from tente. You can probably guess. We stretch it between some poles and voila. A place to sleep when we're camping or a place to put on a circus. It's not something filled with anxiety, though. Just the opposite. It's a place of protection. So lose the hooks. Just keep the tent...and make it a big one.

July 27, 2009

Reader Mark B suggested this word today for very good reason. The small company he runs was just acquired by a multi-billion dollar European behemoth. Integration's on his mind.

Putting two or more companies together is no easy task. In fact, statistics tell us that most acquisitions fail - at least when compared to the original goals developed during the purchase process. With all that's required it's a wonder any succeed. There's the combination of financial and information technology systems. The merging of management - from sales to service, from accounting to attorneys. And most important, there's the co-mingling of the company cultures.

Because culture is more abstract and touchy-feely, it's often overlooked in M&A. People will figure it out, they say. They'll adapt. Hey, if they want to keep their jobs, they'll learn our ways. We must do it better because we acquired them, right? But, we're losing touch with the customer - that's been our key to success, says the little guy.

Sometimes acquiring companies have initial intentions to keep a new company separate, as in the Amazon-Zappos case we discussed last week. That's a very honorable goal, but challenging to implement. The temptation to attain synergies is hard to resist when you see all those redundant costs on paper. A crack in the dam can lead to a flood of little integration points.

Marketing is left with one of the biggest challenges of all. How do we position our little successful, niche brand alongside a mammoth, global brand? It may seem counter-intuitive, but post-acquisition is a perfect time to reinforce the small company history, re-tell the story of the founder and the first product, remind employees and customers about the philosophical pillars of the organization.

Then, go overboard to translate those stories into even better customer service and even more compelling customer experiences. Bring together sights, sounds, smells, touch and taste. Comfort your current distribution channels and even take the opportunity to introduce different business models that open up new segments.

If you're the acquired company, instead of giving up your principles, stick to them more intensely. It's a perfect opportunity to leverage history and pride. Remember, another good word shares the same root as integrate and shouldn't be lost in this process: integrity.

A sign in a hotel room stated that many prior guests chose to be environmentally responsible by reusing their towels. When the sign was changed to say that the majority of guests who stayed in that room chose to reuse their towels, the towel recycling increased by 33%. Peer pressure works.

The Petrified Forest National Park had a sign that asked visitors not to remove petrified wood. When the sign was changed to also say that large amounts of petrified wood were taken away every year, the theft rate tripled. Don't reinforce the negative.

After Williams-Sonoma introduced a new improved, more expensive bread maker, sales of the older unit increased since it made the older unit look more affordable compared to the new top-of-the-line model. Provide customers with choices.

Waiters who gave a mint to customers as they gave them their check got 3.3% higher tips in a study. When they personally offered the mints, the tips went up by 14.1%. When the waiter started to walk away, then turned around and offered the customers a second mint, the tips went up 23%. It pays to personalize.

Speaking of waiters, those who repeated customers' orders received 70% more in tips than waiters who just said "okay". Customers like confirmation.

One group took a research study and was paid for doing so. Another group took the same study and was paid, but then the researcher returned and asked for the money back, explaining that he learned he would have to pay for the study himself. After conducting the study many times, the second group consistently rated the researcher much higher on likability than the first group. Apologies can work in your favor.

There are 44 more of these tips in the book and they're all fascinating. Think any of them might help improve sales? You better believe it.

July 25, 2009

The use of words to convey the opposite of their literal meaning. Incongruity between what might be expected and what actually occurs.

Big brother is watching. Or at least he was last week. That's when Amazon did what George Orwell could only dream of. Finding that one of their e-books was supplied to them illegally, Amazon wirelessly reached out to Kindle owners who had purchased the book and deleted it from their Kindles. Just like that. Poof. And the title of the book? 1984.

The media and the blogs were all over this like a cheap suit. And who'd blame 'em? This is classic. You couldn't make this up. Well, maybe Orwell could. Marketing nightmare? Not sure.

Yesterday Amazon's founder Jeff Bezos issued an apology. Except this didn't sound like the typical apology that's been scrubbed by the top partner at the big law firm. You know the kind - where they say they're sorry in a way that limits future lawsuits. No, Bezos really spelled it out and you have to give him credit for it. Here's what he said:

"This is an apology for the way we previously handled illegally sold copies of '1984' and other novels on Kindle. Our 'solution' to the problem was stupid, thoughtless, and painfully out of line with our principles. It is wholly self-inflicted, and we deserve the criticism we've received. We will use the scar tissue from this painful mistake to help make better decisions going forward, ones that match our mission."

Just out of curiosity, I looked up Amazon's mission statement to understand just what they'll be doing in the future to match it. Here's what it says: "Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online." Wow. That's ambitious.

Lessons learned here? Think about the implications and the optics of what you're doing...before you pull the trigger and do it. Don't do what Amazon did. But also, when you apologize, don't beat around the bush. Really apologize. In this case, do what Amazon did.

Now, go out and do your best to apply these lessons in whatever you do. And remember. We'll be watching you.

July 24, 2009

An immaterial entity said to be the animating and vital principle in man. The vital core of something. An inspirational leader.

The big news of the week is that Amazon bought Zappos, the online shoe retailer, for $880 million in cash and stock. Why? Amazon sells everything already.

Seth Godin had a good post about it, in which he explains that Amazon bought Zappos for its corporate culture, relationships with opt-in customers, remarkable business model, its contagious story and its leadership. Agreed, but none of those are things that investment bankers put into Excel spreadsheets.

Its hard to put a price on potential. Zappos' CEO Tony Hsieh thinks he can get to his goals faster with Amazon's help. The company's vision? "Delivering happiness to customers, employees and vendors." Doesn't sound like a good fit with big corporate America to me (what Amazon is becoming, like Microsoft before it). Amazon says they'll keep Zappos separate and retain its leadership.

This acquisition will be a fantastic case study. We should all watch this one closely. It'll tell us whether an iconoclastic upstart with a great vibe, legendary customer service and flawless execution can thrive under the thumb of what used to be an iconoclastic upstart with a great vibe. What happens to companies as they age? Can they retain their youthful spirit or are all of them inevitably pulled down into the whirlpool of bureaucracy and mediocrity?

We know the shoes Zappos sells will always have the bottom part that goes between the foot and the street. That's not the sole they should be worried about losing. It's the other one they need to focus on saving.

July 23, 2009

A device for propelling aircraft or boats, especially one having radiating blades mounted on a revolving power-driven shaft.

Propellers have been around since the time of Archimedes, around 220 BC. Archimedes was a Greek mathematician, engineer and philosopher. He invented a device to lift water to higher areas for irrigation. The device featured a continuous fan blade, or screw, inside a hollow tube. As a crank or windmill turned the screw, water was carried up inside the tube. The device, known as Archimedes' Screw, was revolutionary. Literally.

The principle of the propeller is also utilized in sculling or paddling a canoe, where moving the blade at the right angle optimizes forward movement. Combine a few of those paddles mounted on a single shaft and you've got a propeller. The Wright Brothers applied the concept to air, even discovering the need to twist the blade. The propeller converts rotational motion into thrust - when air is pushed in the opposite direction to flight. We can thank Newton for describing this force...and I don't mean Wayne.

Marketers are the propellers of a business. We create programs to inform and inspire people. That's the rotational force. We hope they convert that power to thrust. Thrust is forward motion, also known as buying. We can't make people move forward and buy. We have to compel them. Sometimes our approaches might seem counter to the direction we want them to move. One of the greatest advertising campaigns of all time was for the Volkswagen Beetle in the 1960's. It was a picture of the car and the word ugly or lemon. By pointing out what critics from one generation were saying, it actually drove a different generation to embrace the design.

Think about what you do to propel your organization. What force are you applying that customers can convert to buying? I know the PR folks reading this have it figured out. They're experts in one of the key aspects of propellers. Spin.

July 22, 2009

This is Middle English from about 1350. The word derives from sequestrare, which means to put into the hands of a trustee. Today, we most often associate this word with with juries who are sequestered during the course of a highly public trial.

I've met some folks in business over the years who'd like to sequester their customers. Here's how it works: they discover someone who needs what they have, so they send the best sales team to wow them. After much time and effort, the person/company agrees to buy what they're selling. Then, to protect ongoing sales, they try to shield the customer from seeing the alternatives. They don't encourage ongoing learning about the topic and the best solutions.

This phenomenon comes from insecurity. Insecurity comes from having a product that's not the best at something. When a product's not the best and you make a sale, it's a little like you've tricked someone. You don't want them to find out the truth. So you hope they crawl into a whole and keep ordering your product. You try to put them out in the wilderness.

Turns out that it's more and more difficult to sequester your customers. There's too much information too easily available. If there's something you're hiding - like a competitor's feature or price - they'll find out. Sooner rather than later. The solution? Make your product the best at something. It doesn't have to be the best at everything. Just something. Then you can be proud. Then you can actually share information to further educate the customer.

The legal system sequesters jurors so they're not influenced by what they might hear in the media. In business, it's no longer possible to hide facts, discussions and opinions from customers or prospects. So embrace open information and use it to your advantage. Just make sure you have a product that supports your case, not one that destroys it.

Matthew Kelly: The Dream ManagerKelly tells the story of a company that becomes devoted to helping employees attain their dreams outside of the office. Then you are challenged to create a program like it for your company.